Using A Lease Option To Sell Your House in Oregon

The exit strategy you use to sell your house can make all the difference in earning the highest possible returns on your real estate investment. An extremely lucrative alternative to selling your house outright, lease options offer a way for you to earn a higher return on the sale. At the end of the agreement, typically one to three years, they can exercise the option to buy the home or walk away, and you keep the initial option fee that you collect upfront as a down.

Much like having tenants, you’ll be renting out your property. However, these tenants have much more at stake than the average tenants, as they are, in essence, test-driving ownership of the property. These tenants are willing to pay extra for the chance at living the lifestyle of homeowners while correcting any missteps with their credit or building savings for their downpayment on the property. With the right tenants and a thoughtfully constructed lease option agreement, many investors learn to appreciate this arrangement’s benefits and begin investing with a lease option strategy in mind. So read on as we explore using a lease option to sell your house in Oregon .

Asking Price

Because you’re in the driver’s seat, you can set the sales price for the property now when you use a lease option to sell your house in Oregon . Often set above market to account for the appreciation estimated to occur over the contract term, while you take the risk there could be a sudden hike in values, the tenant takes the risk that values drop.

Option Fee

Using a lease option to sell your house in Oregon means that you’ll collect an initial option fee ranging from one to five percent of the sales price, though option fees of up to twenty percent are not unheard of, and the fee is typically non-refundable. With the national median listing price for active listings being around $450,000 as of May 2022, 5 percent would be $22,500, which would apply towards the purchase if the tenant exercises the option.

Tenants Maintain Your Property

While you’ll still hold the title and be responsible for the taxes and insurance, everything else will fall on the shoulders of the tenant when you’re using a lease option to sell your house in Oregon . So, for example, tenants typically carry the financial responsibilities of maintaining the home and even making repairs.

Above Market Rent

You’ll make above-average rental income using a lease option to sell your house in Oregon ; the portion of rent paid at above-average rental rates is called the rent premium. The buyers would then deduct the amount paid into the rental premium over the contract term from the sales price upon exercising the option. Of course, if there is no purchase, you’ll also keep these funds.

Talk to one of our highly seasoned professional home buyers at Simply Sold today about your property, with no obligation. At Simply Sold, we want you to know you made the best deal and feel good about working with us long after the closing. That is why at Simply Sold, we’ll compare the numbers of a traditional listing vs. the lease option method and even make you an offer to buy your property directly, as-is, for cash. At Simply Sold, we’re fully transparent, providing the detail of how each number in our calculations so you can make an educated decision about what works best to sell your Oregon house. 

Ready to learn more about the win-win advantages for sellers of using a lease option to sell your house in Oregon ? Call Simply Sold at 502-309-2220.

Trevor Mauch

Trevor is the CEO of Carrot and knows a thing or two about inbound marketing and generating leads online in the real estate industry. As an investor himself, he's generated tens of thousands of real estate leads and is a leading expert in inbound marketing for investors and agents. In addition, his true passion is helping entrepreneurs grow businesses that truly help you live a life of purpose.

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